The crux of whether or not Legal & General had a widespread mis-selling case to answer, in respect of sale of its Flexible Mortgage Policy to consumers, seems in part to relate to the quality of the FSA-commissioned Endowment Sales Review.
Specific details of the 102-page report following the Financial Services and Markets Tribunal between L&G and the FSA reveals the FSA argued there had been “general mis-selling” at Legal & General following a study of 250 cases by PricewaterhouseCoopers, of which 60 were said to be mis-sold. The FSA asked L&G to carry out a sample review of low risk customers in July 2001, following an FSA change in policy in relation to L&G's handling of the illustration issued at the time of sale along with other documents and to a wider FSA endowment mortgage initiative. Findings of this review wer...
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